As of March 31, 2023, the company operates 1,172 branches, employs 10,227 individuals, and serves 2.77 million active customers.
As the 4th largest NBFC-MFI in India (December 31, 2022), Muthoot Microfinance primarily focuses on providing microloans to female customers for income generation in rural areas. The company holds market leadership with a pan-India presence, notably in South India, particularly Kerala and Tamil Nadu.
The company's business model promotes financial inclusion by catering to low-income groups across 321 districts in 18 states and union territories. Over the past five years, Muthoot Microfinance has extended its operations to North, East, and West India, diversifying its customer base and gross loan portfolio.
Muthoot Microfinance has implemented digital healthcare facilities through e-clinics, collaborating with M-Swasth Solutions Private Limited. As of March 31, 2023, 358 e-clinics have been set up, benefiting 41.60% of customers.
Muthoot Microfinance safeguards its customers through credit-linked life insurance policies, natural calamity insurance, and collaborations with the Muthoot Pappachan Group.
Muthoot Microfinance recorded a collection efficiency of 95.84% for 2023.
The company has a diversified funding profile, securing funding through various sources, including public and private sector banks, NCDs, and direct assignment of loans. Muthoot Microfinance maintains a conservative ALM policy, with a capital adequacy ratio of 21.87% as of March 31, 2023.
As of March 31, 2023, the company held debt securities amounting to Rs. 1370.2 crore and borrowings (excluding debt securities) totaling Rs. 5123.0 crore.
The company faces multiple legal proceedings involving its Directors, Promoters, and Group Companies. Unfavorable outcomes in these legal matters may harm the company's reputation, business, financial health, operational results, and cash flows.
MFL, the Corporate Promoter, engaged in other financial services, is under extensive regulation. Any perceived non-compliance by Promoters or Directors may have adverse effects on the company's reputation, business, operational results, and prospects.
Being a non-banking financial company and microfinance institution, Muthoot Microfinance is subject to regular inspections by the RBI. Failure to comply with the observations made during these inspections may expose the company to penalties and restrictions.
A significant portion of Muthoot Microfinance's revenues comes from South India, and any negative developments in the southern states could adversely affect its business, financial health, operational results, and cash flows.
The company has experienced negative cash flows in the past and may continue to do so from operating, investing, and financing activities.
Non-compliance with mandatory anti-money laundering and know-your-customer policies could expose the company to additional liability, causing harm to its business and reputation.
The company carries contingent liabilities, and their materialization could adversely affect its financial condition.